Every food and beverage business is at risk of facing a product recall, yet coverage for these incidents is hard to find. To meet this growing demand and better support food and beverage entrepreneurs, Food Liability Insurance Program (FLIP) has expanded its coverage offerings to include product recall insurance.
FLIP’s Product Recall Insurance in a Nutshell
When a business chooses or is forced to recall a product over safety or quality concerns, product recall insurance from FLIP can cover related expenses. This includes investigating, collecting, and destroying recalled products, as well as hiring a public relations representative to prevent damage to your reputation.
FLIP’s policy is designed to cover costs, including:
- Legal fees you have to pay to investigate, appeal, defend, or settle a recall-related claim against you
- Revenue loss directly caused by a recall
- Costs that exceed normal business expenses to fix an issue with a product
Why This Coverage Matters
The frequency of food and beverage recalls is on the rise. Between 2020 and 2024, there was a 15% increase in the number of recalls in the United States alone.
These incidents can be extremely costly for food and beverage businesses, with the most expensive recalls costing businesses millions of dollars.
You never know when your business could face a recall. The flour you use in your home-baked bread could be found to contain Salmonella, and the Food and Drug Administration (FDA) issues a mandatory recall.
You may realize a batch of the sauce you make and sell to local restaurants accidentally contains an allergen after a customer has a reaction. You need to recall every bottle from that batch.
Recalls place a huge burden on your business, both financially and in terms of the time it takes to properly manage them.
FLIP’s product recall insurance protects you from paying out-of-pocket to handle a recall. This allows you to keep your business up and running despite an event that might otherwise have forced you to close — temporarily or permanently.
Businesses That Need Product Recall Coverage
Any food or beverage business that makes, sells, and/or distributes a product needs recall insurance. This includes:
Why FLIP?
FLIP’s coverage applies to both voluntary and involuntary recalls, meaning it will cover expenses if you choose to recall a product or if you are forced to do so by a government agency. FLIP’s product recall policy also covers international and domestic recalls.
Product recall insurance starts at $109 per month, and you can easily bundle it with FLIP’s base general liability policy for well-rounded coverage.
Learn more about FLIP’s product recall policy and how you can get a free quote today!
Alex Hastings
Seattle-based copywriter and (WA) licensed insurance agent Alex Hastings leverages her experience as a lover of fast-casual food, baked goods, and iced oat milk lattes. She holds a B.A. in Creative Writing from Western Washington University. Before working at Veracity, she was a retail copywriter at Zulily and an English language teacher in South Korea. Alex is fully trained on FLIP insurance coverages and writes content that connects food and beverage business owners with the policies they need.
Seattle-based copywriter and (WA) licensed insurance agent Alex Hastings leverages her experience as a lover of fast-casual food, baked goods, and iced oat milk lattes. She holds a B.A. in Creative Writing from Western Washington University. Before working at Veracity, she was a retail copywriter at Zulily and an English language teacher in South Korea. Alex is fully trained on FLIP insurance coverages and writes content that connects food and beverage business owners with the policies they need.
Kyle Jude
Kyle Jude is the Program Manager for Food Liability Insurance Program (FLIP). As a dedicated program manager with 10+ years of experience in the insurance industry, Kyle offers insight into different coverages for food and beverage business professionals who are looking to navigate business liability insurance.
Kyle Jude is the Program Manager for Food Liability Insurance Program (FLIP). As a dedicated program manager with 10+ years of experience in the insurance industry, Kyle offers insight into different coverages for food and beverage business professionals who are looking to navigate business liability insurance.